BEST FIT HRM

STRATEGIBEST PRACTICESBEST FITRBV RESOURCE-BASED VIEW

Meaning of StrategyDerived from board intentions of decision makersEncompass the enterprise as a whole Co-ordinate resources in a meaningful way Identify future actionsDetermine the scope of the organization

Typology of strategyProcessesDeliberateCLASSICAL SYSTEMIC

OutcomesProfit maximising Pluralistic

EVOLUTIONARY PROCESSUALEmergent

Whittington and StrategyClassicalEvolutionaryProcessualSystemic

Best fit: Lifecycle modelsStart-up: flexible working pattern, less formal, no HR specalist, cost effective HRGrowth: retain expertise, ensure earlier commitment, SOP introduced, need of specialist become apparentMaturity: formalised procedures, control of labour cost, Decline: rationalisation and redundancySisson and Storey (2000)

Best fit: Competitive advantage modelsCost reductionQuality enhancementInnovation

Delery and Doty

StrategySDMDefenderInternalProspectorMarket-type

Best fit: Strategic configurations 1Defenders-internal employment systemsInternal labour marketsDevelopmental appraisalsStrong cultureEmployment security

Best fit: Strategic configurations 2Prospectors-market employment systemsExternal recruitmentResults-oriented appraisalShort-term trainingVoice is unimportant

Limitations of best fit modelsBased on classical versions of strategyDeterministic and one-wayManagers are omniscient and omnipotentStaticLittle empirical support

Blockages and barriersSupervisors do not identify with managementWork overloadLack of trainingSupervisors want flexibilityManagement by omission